Is it necessary to have a business plan for a home based business? The answer is yes and no. If you are considering running a business from home that requires outside finance, then you will definitely need some sort of business plan, and the more comprehensive it is, the better your chance of success.If you are going to have very little expenditure and few overheads, then your business plan need only be of a more personal kind that will allow you to keep track of your projected and actual daily activity, sales targets, marketing costs etc. Let’s look at the difference between the two.1. Using a business plan to secure finance – regardless of the kind of business you have in mind, this kind of plan ideally needs to follow a specific format and, unless you are an experienced business person, you may be well advised to take expert advice.Alternatively you can purchase software that will allow you to tailor the plan to your specific sector. Google “Business Plans Academy” to find business-plans.co.uk for samples of templates for a variety of businesses, from child care to the hotel industry. Each one includes sections such as Executive summary, Description of Business, Product Summary, Business strategy, Financial Summary, Market Research, Market Trends, External Research, Market Estimates, Management Team, Business Location, Business Organization, SWOT Analysis, Competitive Analysis, Customer Segments , Customer Demographics, Sales Strategy, Pricing Strategy, Marketing Plan, Advertising Plan , Objectives & Plans, Resource Allocation, Budget Allocation, Startup Budget, Forecast Profit & Loss Account, Forecast Balance Sheet, Forecast Cashflow, Sales & Profit Forecasts, Sales Charts & Graphs. This, and similar software can be purchased relatively inexpensively and will give you a professional-looking document.2. Using a business plan to develop and maintain targets – Since you’re not looking for finance this can be much simpler, but no less important. Statistics show that people who create and follow a business plan have a better chance of success. For the home based business entrepreneur it can be difficult getting into the habit of following a structured plan, but necessary. Simply by looking at the elements of the full business plan, it is easy to see which sections will be important to the home based business, but it can be broken down into the following fields:
know your product & prices
know your market area
know your competition
know how to get help or training
create daily/weekly/monthly ‘to do’ lists
decide whether and where to advertise and compile costs
set realistic goals and targets
Another important factor is to decide whether your home business will generate immediate income, or whether you will need to consider bolting it on to your existing job or business until it does. By performing the simple exercises above, you will have a much better grasp of your likely earnings than if you start your business with no clear goals or plans.Finally, a home based business is no different to a bricks & mortar business. It needs commitment and hard work to make it successful. Ask any small business owner how many hours they needed to put into their business when they first set up, and you might be overwhelmed by the answer.Ask them if they would trade being their own boss to work for someone else, despite the hours, the headaches, the business planning, and everything else to boot, and in most cases you’ll get a resounding NO!

Job layoffs have become a common phenomenon these days due to the poor economical conditions all around the word. Job security has become a matter of great concern to a lot of people and many of them have actually started looking for alternatives like the home based business. It seems like more and more people have found the answer to their financial crisis.The Significance of starting a business from home:People who previously considered their jobs as safe are now feeling the insecurity in the air. They are looking at home based business as a shelter to sustain their and their family’s ongoing expenses even if they lose their jobs.Home business not only leads to wealth creation and greater financial freedom, it also can be made into a primary career of an entrepreneur.With the increasing threats of layoffs, businesses from homes not only provide a safety net, but it also gives you the opportunity to be your own boss and work from the comforts of your home. It allows you to make the decisions and take control of your own success and fate. However, you may take months and maybe years to actually succeed with it.The new type of economy may display immense variation, but it also creates opportunities for entrepreneurs.In these hard economic times, home business can prove to very lucrative. Your success is associated with exercising your choices with carefulness and awareness.There are many companies which offer home based work opportunities and they provide excellent training and support. However, please be reminded that they will not do the work for you, and you will need to put in the due efforts to make it work.As a matter of fact, a home based business is not just meant for everyone. There are a few distinguishing traits one needs to posses in order to be successful with a home business.An entrepreneurial mindset: As an entrepreneur, you’ll need to be willing to take the calculated risks on the investments which you make. The confidence to take the risks comes from your sheer determination and dedication. If you do not have that kind of mindset, you will be wasting your time and money.Leadership skills: You need to become a leader rather than a follower. Leadership skills will help you to build a team which will be extremely important for your business growth.Knowledge: You will need to keep enhancing your knowledge by showing a strong desire to absorb all the information related to your business.Dedication: Dedication in your home based business will help you to take your business in the right direction, which is towards the desired goals and success.Patience: Like any business, your business from home will also take time to grow. You will need time to understand your business and to create a strong client network. Therefore, you’ll need to be patient.These are the basic skills required to be a successful home business entrepreneur. Setting up rational and achievable goals for yourself and increasing them as you progress will lead you to success. Home based business is all set to eliminate the fear of job layoffs, provided that you have what it takes to make it happen.